Good morning and welcome to Grieg Seafood's first half 2026 presentation. My name is Nina Willumsen Grieg, and I'm the CEO of Grieg Seafood.

I'm joined today by our CFO, Magnus Johannessen. This is the first time we're holding the presentation in Bergen, and I appreciate everyone who has joined us early this morning.

Today's agenda includes updates on our operation and market activities. For the first time, we are presenting Farming and Sales as separate segments.

As usual, Magnus will take us through the financial results at the end of the presentation. This first half year have been challenging for Grieg Seafood.

Weaker market conditions than we anticipated combined with biological challenges and a company in transition resulted in weak financial performance. The results are certainly not to the standard that we like to set for ourselves.

We harvested nearly 14,000 tonnes and delivered marginally positive results in both Farming and Sales. The freshwater production have been strong across all sites, while at sea we have had a rough start to the year.

However, I'm pleased that we have entered Q3 with close to maximum MIB and the fish is performing well. During the period, we ramped up Gardermoen VAP facility and implemented actions to mitigate rising feed prices.

Refinancing of the hybrid marked important last step in ensuring a long-term financing structure for our company. I will get back to details on these highlights.

One slide on context on the new Grieg Seafood before we turn to the numbers. 18 months ago, we were a company managing a balance sheet problem.

Today, we are a focused Rogaland operator with a clean capital structure. The transition is done, and it proves that this organization can move decisively when we need to.

The years 2020 to '24 brought biological issues in Canada and Finnmark, heavy CapEx, and write-downs. We found a solution without diluting our shareholders: first, a hybrid bond, then a disciplined divestment process in which we mapped every option before we moved.

The result is well known. We divested three of four regions and closed the sale to Cermaq at 10.2 billion, which cleared the debt from our balance sheet.

Over the past 12 months, we have paid 4 billion NOK in dividend, established a new bank syndicate, and last in June issued 750 million hybrid. We have also resized the organization, and cost-cutting initiatives are tracking ahead of the original 50 million target.

From here, the agenda is simple: strengthen the core, keep taking costs out, and optimize post-smolt as our main competitive advantage. A transformation of this scale is demanding for any company, but it has built the decisiveness and focus that I believe leave us stronger, even with a challenging start to this year.

With post-smolt and our own sales organization in place, we believe we have the setup to act as a consolidator in Western Norway at the right time and on our terms. For now, the management team's top priority remains building a strong foundation, and we will keep looking for and acting on improvements across the balance sheet, the structure, and our operating model.

Then to the numbers. Starting the operational review on a positive note on land.

We had strong freshwater performance during the period. We released 2.9 million smolt with an average weight of 1.3 kilo.

A major milestone during the quarter was the harvest of 600 tonnes of fully land-grown fish. Seawater production was affected by challenging biological conditions.

The weak results in Rogaland is driven mainly from harvesting fish groups with winter wounds in Q1 and into Q2. Sea lice issues and repeated treatments in late 2025 resulted in weaker fish in a cold winter.

The situation looks much better now, and we have done several operational changes to prevent this from repeating. Winter wounds led to a low superior share of 63% and harvesting fish with lower harvest weights due to fish welfare.

Building biomass left us with a harvest profile heavy at the end of Q2, where superior share had improved, but at a time where the prices were at its lowest. However, by building biomass, we are increasing the guidance for the full year back to 31,000 tonnes.

Challenging biology transfer directly into a farming cost of 70.9 NOK per kilo. Production is strong so far in Q3, and we maintain our cost guiding for the full year at 67.5 NOK.

Feed prices going into Q3 have increased due to challenging fisheries and tighter raw material supply. We have done targeted actions to contain costs, including revision of feed recipes and introduction of land-based proteins or poultry meal.

With these measures, we have absorbed 50% of the raw material increase. While we believe the increase of price is not permanent, we see it as essential to include a wider range of alternative ingredients, both for sustainability, cost, and nutrition.

As mentioned, our land-based production across sites have been strong during this period. The capacity available to us gives us the opportunity to adapt smolt size to the needs of our production.

The pilot for land-based fish at Årdal was the ultimate test of our land-based facilities. The biological results were strong, with high survival on land and 95% superior share.

The main learnings related to transferring large fish to the harvest plant and purging them at sea to remove the land-based taste. Sea-based purging has never been done before.

The result I'm most pleased with is that we saw no significant slowdown in growth among larger fish, unlike the challenges reported by other land-based projects. This production confirms that Årdal and Grieg Seafood have the setup to produce 5-kilo fish on land with low mortality and high superior share.

However, given the cost of production without the necessary scale, we will for now focus solely on post-smolt in all four halls at Årdal. With data from 75 post-smolt groups across varied sizes, we are now conducting a thorough analysis on the best operational strategy going forward.

We know the post-smolt strategy is delivering and we now have enough completed cycles to fine-tune it. Increasingly, that tuning is about improving smolt quality and the value each kilo realizes on different sites throughout the year.

We also see our available land-based capacity as a competitive advantage in a potential consolidation or collaboration, giving us flexibility to adjust the number and size of post-smolt supplied to additional sea licenses. While sales and value-added processing have been part of Grieg Seafood for many years, we present it as a segment for the first time, with figures included from 1st of April 2026.

The segment delivered positive EBIT contribution of 15 million NOK. However, this should not be read as the potential of the segment.

Sales performance on superior graded fish was strong during the period, but price achievement was highly affected by downgraded fish, the ramp-up of Gardermoen, and currency fluctuations. We have had a contract share of 30% year to date, delivering a positive contribution to results.

The contract share will be stable into second half of the year. Grieg Seafood Sales purchase fish from external suppliers to support contract fulfillment and maintain production volumes at our processing facility.

While this is mainly done from week to week, we recently entered into an annual agreement to sell 50% of Lingalaks' volume through our sales organization. Our new value-added processing facility at Gardermoen started production in January, and establishing a new production line takes time.

One-off ramp-up costs and negative earnings driven from capacity utilization has affected our results this period. Production at the facility is picking up speed, and the important milestone of breakeven volumes was reached during July.

Going into Q3, focus is on stabilizing volumes and optimizing both the line and our product portfolio to ensure the best result in total. I believe we have a strong team on VAP and the facility, and we expect the positive trend to continue through second half of the year.

With that, I leave the stage to Magnus.

Thank you, Nina, and good morning, everyone. It's great to present in Bergen, but it would be even better if the results were representing the strong track record we have in Rogaland.

Starting with the profit and loss. Our sales revenues are down 6% year-over-year.

This is due to a high share of downgraded fish in an already soft price environment and is even magnified by the lower harvest volume that we have in '26 compared to '27 '25 in the first half year. The biological challenges of course, then, impacts our revenues.

Equally, our farming cost is not satisfactory for this half year. We see our farming cost being almost 71 NOK per kilo, which is an increase of above 14 NOK year-over-year.

The biological challenges led to higher capitalized cost to the generation, which was harvested both in Q1 and Q2. Combined with the lower harvest, adaption of our harvest plan to accommodate the changes following the incident, as well as general cost increase, the farming cost was high for the first half year as a whole.

However, there are also positive elements in the first half year. For instance, our headquarter cost reduction is tracking ahead of plan.

We see additional cost initiatives being explored, defined, and implemented as we go into 2027. We do believe that we gradually will come down to three and three NOK per kilo and below.

All in, we see that our operational EBIT for the group came in at minus 30 million, which is equivalent to a negative 2.1 per kilo, which is not satisfactory or representative of the new platform Grieg Seafood is building on. Moving then to cash flow.

Our net cash flow from operations ended at negative 108 million. It was positively impacted by the EBITDA of 48 million and negatively impacted by changes in working capital of -257, partly offset by lower biomass at sea.

Looking at the net cash flow from investment activities, we see this coming in at negative 80 million. This includes 35 million CapEx investments in our Rogaland segment as well as 40 44.5 million participation in the share issue at Årdal Aqua early in this year.

However, looking at investments, this is a positive element in today's presentation. We reduce our CapEx guidance for the full-year 2026 from 150 million to 105 million.

This increase is expected to come mainly from the Farming segment, a statement to the strong and well-invested value chain that we have built up in Rogaland over many, many years. Looking then at the larger items in the cash flow, which is net cash flow from financing.

This is not surprisingly impacted by the dividend of 4 billion paid in end of April as well as the refinancing of the group's capital structure of net 339 million. In this number, you will have both the repayment of the hybrid bond, the issue of the new hybrid bond, the drawdown on the new RCF credit facility, as well as the repayment of the bridge loan.

As such, this is a net figure representing the full restructure that we did on the finance capital structure. Moving then to our net interest-bearing debts.

The net interest-bearing debts started off going into 2026 with a positive cash position of almost 2.5 billion. The cash position was positively impacted from the operational EBITDA as well as the reduction of biomass at sea.

Then, we also have reduced the cash position through our investments, the dividend, as well as other changes in our debt structure. All in all, we exit the first half year with a net interest-bearing debt, excluding IFRS, of 1.25 billion.

Despite having a more normalized capital structure, we still have available liquidity and cash of above 1.1 billion, and we still have a robust liquidity position. However, I think it's important to spend some time on our capital allocation strategy that is revised in going out of the first half year.

Even though Grieg Seafood maintains a robust balance sheet, the carrying value of our licenses are significantly below the fair value of those licenses. For instance, our licenses is only valued in our books at 250 million despite being worth many billions.

This makes our balance sheet more sensitive to changes in price and earnings fluctuations. At the same time, there are risks that we need to account for.

We see political, regulatory, and market risk. Most importantly, there are significant opportunities in this sector, opportunities that Grieg Seafood wants to explore and move towards.

As such, we will prioritize creating headroom in our balance sheet to be able to more easy and flexibility to act on those opportunities. That is why we repeat our three pillars in the strategy.

We still will strengthen our core, but most importantly, we will prioritize important and also exciting opportunities that we believe the industry will be facing, and Grieg Seafood plans to have a key role in that process. Also, we have done strong and decisive investments over 10 years in our post-smolt technology, but we are also open on exploring new technologies if the time and price is right.

For now, we are prioritizing strengthening the core and the expansion of Grieg Seafood. Due to that, we also want to invite our shareholders to our Capital Markets Day on the 27th of April next year.

We believe that this Capital Markets Day is important to go through the new Grieg Seafood platform as well as looking and discussing the opportunities that we see ahead. Further information about this Capital Markets Day will be published in due time and invitation will be sent out.

For those who are unable to attend in person, there will be a streaming of the presentation itself. Based on that, I thank you very much for presentation, and me and Nina will take questions from the web and in the room.

Thank you. Let's start with the web, unless there is any questions in the room.

Yeah.

Your equity ratio sit at 30%, while the covenants for '26 is the same, at 30%. How comfortable are you with this position?

We have

in the new bank syndicate, we have a gradually increasing or stepwise covenant. It started out at 20% equity ratio, and out of the first half of 2026, it was 25%, and it will not be 30% until exiting the first half year '27.

We are comfortable when it comes to our equity ratio. At the same time, the important changes we do to the capital allocation strategy is to exactly create the necessary headroom to have that opportunity to act without being in breach of covenants.

We have a very good dialogue with the bank syndicate on these matters.

How will you create the financial flexibility to pursue M&As?

There's several, of course, options to that. We are reducing costs.

We are doing adaptions to how we operate, as well as implementing the initiatives Nina talked about on post-smolt. More importantly, it will be to repay debt.

Given that our balance sheet is so small compared to the underlying values, there are not that much earnings that need to come in in order to improve this equity ratio significantly. It will be through the operations.

Of course, just to add, the capital markets, of course, will still be an important source of capital for us.

Following the recent divestment, your farming footprint is now highly concentrated. How do you plan to mitigate the increased biological risk and achieve industry-standard margins with a reduced geographic setup and limited growth capabilities in PO2?

I think the post-smolt is what really takes down the risk on the western coast of Norway. That is our main focus.

We also believe that 30,000 tonnes and the 13 sites that we have available is giving an okay risk return to that. That is also one of the reasons why we believe we need to grow into PO3 and PO4 to reduce that risk.

Can you please give a breakdown of the earnings in VAP and Sales and give indications of the earnings potential in each?

I don't think I will do the breakdown live on stage, but what we can say is that the VAP contribution is the most significant contribution when you look at the facility and the VAP income separately. As well as the VAP facility is also contributing positively going into H2.

It's a combination of those who are positive for H1. When it's for the sales performance, the sales performance on the superior graded fish is very strong, but it is the downgraded fish that is offsetting that performance in this quarter.

To break it down, I would say that the price achievement on superior is the key driver, and then the negative key driver would be the operational result in the Gardermoen facility and then offset by the VAP performance. That is the overall breakdown.

Then I can come back to the numbers next time.

One last question. How do you see cost developing into '27 based on the current inflationary environment in feed?

The inflation on feed prices from marine ingredients now is high. As we said, we have done what we can to contain that price increase.

I think it will not stay forever. Fisheries will start up again next year.

For us, it has been really important to create the flexibility in that prices. Yes, there will be some inflation from feed absolutely into 2027.

Yeah. Just to add to that, given that the generations we have in the sea now is fed with feed on the old price, the implementation of the feed increase will not be seen until early medio 2027, April, May.

There's an implementation effect from the feed price increase as well.

Will the cost go up or down compared to '26?

It will go significantly down. On that, we end the stream, and thank you very much for following.

Appreciate it.